GDT head warns breweries over tax compliance
GDT head warns breweries over tax compliance
Cambodia's tax chief ordered brewery and beverage plant owners to comply with tax good governance principles, including transparency, firmly suggesting that they install modern flow meter systems.
General Department of Taxation (GDT) director-general Kong Vibol made the instruction during a visit to a Heineken Cambodia Brewery in Chbar Ampov district’s Prek Eng commune of southeastern Phnom Penh for the inauguration ceremony of such a system.
He lauded Heineken Cambodia as a role model of tax compliance for its peers, saying the new system is straightforward and would supplement existing flow meters to make data easier to collect and share among GDT officials for review.
But he then took a harsher tone. “Companies must understand that we have no choice – there must be an improvement in your corporate governance as well. Without the proper bookkeeping and proper control how could you run a big plant like this?”
“I hope that those who resist will understand what I mean today. But I’m also concerned as well, when we do have the proper [procedures in place], transparency, flow meters – you are to comply.
“I promise I’ll make sure that everyone complies as players in this playing field,” he said in a vague warning.
And in a nod to Heineken Cambodia, Vibol said: “I thank you for continuing to expand your investments and remaining as a role model taxpayer.”
Heineken Cambodia managing director Samson Wong said he had received a letter of appreciation, bearing Prime Minister Hun Sen’s seal, that acknowledged the firm’s distinction as the “number one taxpayer in the country”.
He lauded the government for protecting people’s lives and its effective and impressive management of the Covid-19 recovery.
“Tax contributions are every essential to assist the healthy recovery of the country’s economy and the people’s well-being,”
“At Heineken, we are committed to the development of Cambodia via our various contributions to the country. We believe the installation of the required flow-meter will ensure the correct and fair tax will be collected by the GDT.”
“Therefore we are delighted to give our utmost to the GDT on this. And, we believe all other beer companies that are truly responsible and sustainable will also do the same,” he said.
Present in the Kingdom as Cambodia Brewery Ltd (CBL) since 1994, Heineken Cambodia has invested more than $230 million in its state-of-the-art brewery over the last five years.
Cambodia imported $17.89 million worth of beer, wine and spirits last year, down by 49.78 per cent from $35.61 million in 2019, according to data from the Ministry of Commerce.
There are 13 registered brewery/beverage plant operators in the Kingdom, data from the Ministry of Industry, Science, Technology and Innovation show.
